Nuclear Stocks Oklo, NuScale Face Valuation Headwinds Amid High Cash Burn

Shares of nuclear energy firms Oklo (OKLO) and NuScale Power (SMR) are trading at valuations that appear stretched despite steep year-over-year losses, according to an analysis by Investing.com. Both companies, which are developing next-generation reactors, are trading above their estimated fair values, suggesting the market is pricing in significant future growth that has yet to materialize.

Valuation and Fundamentals

An October 1 analysis shows that neither company offers a clear margin of safety based on current fundamentals. NuScale holds a slight edge on a price-to-book basis, but both firms are burning through cash as they work toward commercial operations.

• Fair Value: Oklo’s stock price of $36.08 was 10.2% above its fair value estimate of $32.42. NuScale, at $7.84, traded 8.2% above its $7.20 fair value estimate.
• Price-to-Book: NuScale appeared cheaper with a P/B ratio of 1.6x, compared to 2.1x for Oklo.
• Revenue and Earnings: NuScale reported $31.48 million in revenue for fiscal year 2025, though this was a decline from the prior year. Oklo currently reports no revenue. Both companies posted significant EBITDA losses in 2025, with NuScale at -$181 million and Oklo at -$138.77 million.

Both companies carry very little debt, with Oklo's valuation resting entirely on the future deployment of its reactors, while NuScale has a small, established revenue stream.

Market Performance and Risk

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Both stocks have experienced severe declines over the past year, with Oklo falling 68.1% and NuScale dropping 78.4%. The analysis highlighted a significant difference in volatility between the two.

NuScale has a beta of 2.31, indicating it is more than twice as volatile as the broader market. In contrast, Oklo’s beta is a more moderate 1.20. High beta can lead to amplified gains in a rising market but also steeper losses during downturns.

Pairs Trade Risks Outlined

The report also examined the viability of a pairs trade—simultaneously going long on one stock and short on the other—given their shared exposure to nuclear policy and demand for AI-driven power. However, it cautioned that such a strategy carries substantial risks.

Key risks include the stark mismatch in beta, which would prevent an equal-dollar position from being market-neutral. Furthermore, company-specific news, such as a major contract win or a capital raise, could cause their stock prices to diverge sharply. The analysis concluded that without statistical verification of a stable relationship, any pairs trade would be highly speculative.